$AVID Still a buy, here's why:

NASDAQ:AVID   Avid Technology, Inc
Over the last 4 quarters AVID has beat EPS estimates every single time. AVID shares have added about 130%+ since the beginning of this year and quarterly revenue was up by 20 million more than estimated. The main reason for the recent sell off was the slowing of subscription based plans that were up massively in the first quarter of this year. This was expected, as more people were exposed to the audio and video company's services during work at home based projects that boomed during the 2020 pandemic quarantine than they are now.

Back to the chart, it seems clear that there is a decent level of supply between the .236 and . 382 retracement levels that coincide with the 200 day MA. It is also important to note that the day after the ER, the stock used the first anchored VWAP from February as support and has held that level for now. Below the AVWAP, a further retracement to the previously mentioned levels might be imminent. Like many tech-related stocks with big demand gaps above after earnings , I don't expect that gap above the .618 to fill quickly, or at all. I am willing to play the patient game and buy more shares near the 200d MA if those levels are reached.


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